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Entrepreneurial
Snapshot: Your Dream Car for FREE!
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INTRODUCTION
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In our previous article we introduced you to government
and
seizure auctions which allow you to buy cars, boats, real
estate,
and name brand merchandise for more than 90% off retail
value. In
this entrepreneurial snapshot we will show you how to use
buy
low, sell high and leverage techniques to purchase your
dream
vehicle or house or whatever it is that you dream of
owning.
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DISCLAIMER
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This entrepreneurial snapshot is not intended to be a sure
fire
way to success in a venture. But, instead a hypothetical
guide
which can be harnessed to develop your own plan for
success.
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INSPIRING QUOTE
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You have to learn to treat people as a resource......you
have to
ask not what do they cost, but what is the yield, what can
they
produce?
--Peter F. Drucker
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CONTENTS IN THIS ISSUE
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1. Background Information
2. Finding Government/Seizure Auctions
3. Planning Before You Head to an Auction
4. Paying for the Vehicles
5. Marketing and Selling the Vehicles
6. A Good Plan B Strategy
7. Legal Issues
8. Closing Statements
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== 1. Background
Information ==
Let's say that your dream
car costs $50,000 dollars, and you want
to buy it brand new and fully customized to your personal
preferences, but the car you want is only a dream because
you
certainly can't afford it. Now, if you read through our
e-course
we tried to hammer down into your mind that IT DOESN'T
TAKE MONEY
TO MAKE MONEY IT JUST TAKES AN IDEA AND CREATIVITY!
With this snapshot we'll use auctions as an example to
show you
how you can use the buy low, sell high technique and
leverage for
accomplishing your goal, in this case getting your dream
car for
FREE. In this case we don't mean FREE as in walking up to
the
dealership and getting them to just hand over the car you
want.
Instead, we mean FREE as in raising the money through
business
ventures that cost you none of your own money.
== 2. Finding Government/Seizure Auctions ==
This information can be
found within the article we sent out last
week entitled 'Real Estate, Cars, and More For Pennies On
The Dollar'!
View it by clicking here: http://www.money-mind-news.com/art_6.html
== 3. Planning Before You Head to an Auction ==
Before you even begin to think of going to an auction you
need to
do some planning which you should in turn do with any
business
idea.
Things that you should plan for include:
1.) How much to spend per vehicle?
2.) What resell percentage do I want to make per vehicle?
(resell price/auction price) * 100 =
resell percentage
3.) How am I going to move the vehicles?
4.) Where I am going to store the vehicles.
5.) What's my plan B in case I have problems reselling the
cars
on my own?
== 4. Paying for the
Vehicles ==
1.) Cooperative Buying
You can establish a joint
venture with people you know maybe
friends or a family members and put money into a fund for
purchasing cars. How much each member puts into the fund
should
determine how much money each member receives once the
cars are
sold.
Let's say member 1 puts in
25% of the money for the fund then
they in the end will receive 25% of the profits. This is
beneficial because it allows members who probably couldn't
afford
to buy even one car to make a profit by working together
as a
team.
This method is only
beneficial to you if you either put some
money into the fund yourself. Or charge some sort of
commission
fee for providing the service. This would allow you to
make it a
no money down deal. A strategy for doing this is detailed
below.
2.) Using leverage
This is like the cooperative buying strategy but with a
twist
that makes it no money down.
Since, not many people know about auctions due to the fact
that
they are not usually heavily publicized you could use your
leverage, the knowledge of knowing of the auctions, to get
people
to invest in your funding. With an effective business
proposal
you should easily be able to market your idea as profits
of
500 - 1000% are quite possible.
Here is an example: You buy a $20,000 car for $1500 at an
auction.
You turn around and sell it for $15,000. Using the formula
above
you get a 1000% return on the money.
Now let's say investor 1 invested 25% of the money in your
investment fund out of the 100% that all investors put
into your
fund...this was a no money deal on your part!
From this one car you made $10,000. Out of $1500 the
investor
spent $375. So, for this investor and other investors to
get
their money back you'd have to pay them at least $1500,
with $375
of the money going to investor 1, netting you $8500 total.
But in
all reality the investors would want to make more of a
return on
their money so you could, in the investment contract,
write that
they'd make their money back plus 15% of the profit split
amongst
themselves. So from 10,000 you'd first loose 15% of $10000
or
$1500 plus the $1500 they initially invested so you would
still
make $7000 while they would make $3000 collectively!
To get investors to be willing to put more money into your
deals
you could add the additional twist of offering them higher
percentage returns for putting more money into your fund.
So,
they'd get all their money back plus 25% for being the
investor
who put the most money into your fund, for example.
3.) Loans
If you plan out the concept well enough you could consider
getting a loan to purchase a few cars. Cars sell rather
quickly
so you should be able to pay off your debt quickly and
then continually reinvest money into buying more cars till
you
have enough to purchase your dream car.
With a quality business plan you can use leverage to get
banks
to knock down interest rates or give you other perks like
lengthening payment periods without penalty.
== 5. Marketing and Selling
the Vehicles ==
Here are some quick options
that you can consider for selling
your vehicles.
1.) Online Car Selling
Services
There are plenty of websites that offer services for
listing
vehicles. They usually charge you a fee for listing your
vehicle.
A good example of such a
service is CarTrader.com.
You could also consider
listing your vehicles on eBay.
2.) Local Classified Ads
You could have your cars listed in local classified ads.
There
are always plenty of people looking for deals so if you
knock off
a few thousand dollars you should get a lot of responses
for your
vehicles.
If you have not had your cars serviced to check if they
are of
good quality. Then make sure that you state that somewhere
in the
ad. Remember, honesty is the best policy!
3.) Strategic Placement
Find places that have high traffic to place your vehicles
while you are waiting for them to be sold. Make sure you
place for sale signs somewhere in the vehicle so people
are alerted that they are for sale. Before you place
the cars make sure that you contact whoever owns the
property. They will probably be more then willing to let
you
use some of their land to park your cars if you pay them
some
money for parking the vehicles there or maybe a small
percentage of the sale price.
== 6. A Good Plan B Strategy ==
If you are having difficulty selling your car you could
try
turning to a used car lot for help. But, before you sell
off your
vehicles consider working out a contract with the used car
lot
where they will help you sell the vehicles for you for a
commission.
== 7. Legal Issues ==
Make sure that you check with your local chamber of
commerce or
small business development center to find out what
licenses or
registrations you need to have before you consider buying
any
vehicles.
== 8. Closing Statements ==
Once again, We emphasize over and over again that
it does
not take money to make money. You are only limited by how
much
knowledge you have. Learn, learn, and learn some more then
develop a vision and use creativity and leverage to make
it a
reality!
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Copyright 2003 OD Ntuk, All Rights Reserved Worldwide
OD Ntuk
Publisher, Money Mind News
http://Money-Mind-News.com
ABOUT THE AUTHOR: OD Ntuk is a multi-faceted entrepreneur
with experience in a wide array of entrepreneurial
ventures. He brings his knowledge and experience to the
table with his unique laid-back and easy to understand
writing style. Whatever you may be interested in expect to find
it in Money Mind News as he writes articles ranging from
home business to marketing
and promo, inspiration and motivation to network marketing, and
self publishing.
Send a blank email to mailto:moneymind@money-mind-news.com, or visit
http://Money-Mind-News.com to be subscribed.
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